Dubai Property Market attracts Asian Investors
Asian investments dominate Dubai property market
Published on 04, June 2008
After the opening up of its property market to foreign investors in the early 2000s, Dubai has leveraged itself as the most lucrative destination for real estate investments in the Middle East. External funds now account for 60-70% of the Dubai real estate industry. Our studies reveal that a sizeable portion of these investments come from Asian countries especially the Indian sub-continent and Arab states like the Kingdom of Saudi Arabia and Kuwait. And, statistics from the Real Estate Regulatory Authority (RERA), Dubai corroborate the findings.
A cross-section of foreign investments in Dubai real estate
(Data compiled by Gowealthy Research Team. Sources include newspapers, online reports, data from government agencies like RERA Dubai, Dubai Land Department and leading developers in the region)
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Industry experts surmise that the 2.5% depreciation of the Pound Sterling and the fall in the UK property prices will deter British buyers from investing in Dubai Freehold. At present, there are more than 100,000 UK expatriates working and residing in the UAE (Source: The British Embassy). British nationals own property worth US$ 1.2 billion in Dubai.
Our research reveals that Saudi and Indian nationals together account for US$ 2.83 billion in investments in the Dubai real estate sector. Pakistan and the Middle Eastern countries like Kuwait, Oman, Iran, Bahrain and Qatar constitute another US$ 3.61 billion. The studies are further validated by data from the Real Estate Regulatory Authority (RERA). Therefore, contrary to reports of the UK price slump affecting the Dubai real estate sector adversely, we conclude that it will have minimal impact on the industry, simply because a majority of the investors are from Asia. Interest from the sub-continent notwithstanding, investors from emerging markets like South Korea and China are focusing on the UAE property market, with prime emphasis on Dubai. Dubai's economy is benefiting from a boom in the Gulf economies as oil prices surge to new records above $126 a barrel, flooding the region that pumps about a fifth of the world's crude with capital. |
UK price slide will not affect Dubai
property industry...
Gowealthy research findings reveal that the ongoing slump in the UK property market will not affect the Dubai real estate industry adversely. British buyers now account for 12 per cent of foreign real estate investors in the Gulf. One of the leading dailies in the UAE reported that the fall-out in UK property prices will have a significant impact on Dubai. But we predict that the market will be buoyant in 2008/09 and beyond 2012, as a majority of the stakeholders are from the Indian subcontinent and Middle East. |
